Richard Dickson

It's all concerning, but I think it's... It's no different than any other year of complexity. We can talk about tariffs being the challenge of this year, but there's been challenges every year that companies go through. And it's how you deal with the challenges at hand. We're working hard, obviously, to mitigate any price increases to consumers.

It's all concerning, but I think it's... It's no different than any other year of complexity. We can talk about tariffs being the challenge of this year, but there's been challenges every year that companies go through. And it's how you deal with the challenges at hand. We're working hard, obviously, to mitigate any price increases to consumers.

We want to maintain that integrity of our price value.

We want to maintain that integrity of our price value.

We haven't changed our inventory management methodology or our open-to-buy methodology. Currently, as I shared, less than 10% of our product comes from China, which has been obviously one of the countries that has been impacted by tariffs. As Canada and Mexico have been in the limelight in the context of tariffs, less than 1% of our product comes from Canada and Mexico.

We haven't changed our inventory management methodology or our open-to-buy methodology. Currently, as I shared, less than 10% of our product comes from China, which has been obviously one of the countries that has been impacted by tariffs. As Canada and Mexico have been in the limelight in the context of tariffs, less than 1% of our product comes from Canada and Mexico.

By the way, that's combined. Where do your products mostly come from? We have Vietnam, Central America, Bangladesh, other parts of the world that we've been diversifying for the last several years, our manufacturing footprint.

By the way, that's combined. Where do your products mostly come from? We have Vietnam, Central America, Bangladesh, other parts of the world that we've been diversifying for the last several years, our manufacturing footprint.

So it doesn't make us immune to the situation, but we do have a bit more resiliency and optionality that is obviously resonating well currently with the dynamic that we're all dealing with.

So it doesn't make us immune to the situation, but we do have a bit more resiliency and optionality that is obviously resonating well currently with the dynamic that we're all dealing with.

Well, look, I think that the only place that you could assume to be encouraged with a reduction to do business would be in the U.S. I think if you spend all your time trying to chase, if you will, where the opportunity is to manufacture goods without the burden of tariffs, you're going to waste time.

Well, look, I think that the only place that you could assume to be encouraged with a reduction to do business would be in the U.S. I think if you spend all your time trying to chase, if you will, where the opportunity is to manufacture goods without the burden of tariffs, you're going to waste time.

We do have some manufacturing in the United States. We do t-shirts. We have some denim. We would love to do more in the United States. And there are different teams working on that as a possibility. The size and scale of our business would preclude us from manufacturing everything in the U.S.,

We do have some manufacturing in the United States. We do t-shirts. We have some denim. We would love to do more in the United States. And there are different teams working on that as a possibility. The size and scale of our business would preclude us from manufacturing everything in the U.S.,

But there are some encouraging incentives to think about as we start to diversify our retail footprint, diversify our manufacturing footprint, and think about ways that we can grow perhaps more manufacturing in the U.S.

But there are some encouraging incentives to think about as we start to diversify our retail footprint, diversify our manufacturing footprint, and think about ways that we can grow perhaps more manufacturing in the U.S.

Well, we've been growing our business. Again, in the context of a market that's declining, we're breaking through. Our brands are growing. We stabilize them. They're starting to put up scores on the scoreboard in terms of growth. We're growing our market share. We're very conscious of the consumer.

Well, we've been growing our business. Again, in the context of a market that's declining, we're breaking through. Our brands are growing. We stabilize them. They're starting to put up scores on the scoreboard in terms of growth. We're growing our market share. We're very conscious of the consumer.

We maintained our position with the value consumer with Old Navy, and we grew the income cohort at the higher level.

We maintained our position with the value consumer with Old Navy, and we grew the income cohort at the higher level.

not necessarily, there is a flight to value that exists, but the higher end consumer still wants to be associated with brand relevance, higher quality, brand narratives.

not necessarily, there is a flight to value that exists, but the higher end consumer still wants to be associated with brand relevance, higher quality, brand narratives.

And I do believe because we have upped our game, we become more relevant, we become more stylish, we become more effective in that space, that there is a migration of higher end consumers that might not have thought about our brands like Gap and Old Navy and Banana and Athleta and are now starting to be either introduced or reintroduced.

And I do believe because we have upped our game, we become more relevant, we become more stylish, we become more effective in that space, that there is a migration of higher end consumers that might not have thought about our brands like Gap and Old Navy and Banana and Athleta and are now starting to be either introduced or reintroduced.

So I actually believe our portfolio creates resilience in the context of where consumers are because we have a broad consumer base.

So I actually believe our portfolio creates resilience in the context of where consumers are because we have a broad consumer base.

It's a great question. I'm not sure I loved him sharing that. But what I would say is, at Mattel, Mattel is a toy company. The heart and soul of the company is about fun. It's about surprise. It's about innovation. It's about creativity. And as a leader in that company that led product design and marketing and new brand development and reinvigorating brands,

It's a great question. I'm not sure I loved him sharing that. But what I would say is, at Mattel, Mattel is a toy company. The heart and soul of the company is about fun. It's about surprise. It's about innovation. It's about creativity. And as a leader in that company that led product design and marketing and new brand development and reinvigorating brands,

you had a responsibility to be the inspiration as well as the innovation, if you will, to unlock innovation, to inspire creativity, to bring back that element of surprise and delight. And in my personal history, Willy Wonka was this sort of character that, you know, you just were excited around what was behind the closed door. What was the innovation that you were going to reveal?

you had a responsibility to be the inspiration as well as the innovation, if you will, to unlock innovation, to inspire creativity, to bring back that element of surprise and delight. And in my personal history, Willy Wonka was this sort of character that, you know, you just were excited around what was behind the closed door. What was the innovation that you were going to reveal?

And so my role at Mattel was very much leading that creative endeavor. And as I was looking at bringing in creative talent, I referenced Zach as the Willy Wonka of Gaff Hink.

And so my role at Mattel was very much leading that creative endeavor. And as I was looking at bringing in creative talent, I referenced Zach as the Willy Wonka of Gaff Hink.

Well, I say it is head to toe on a daily basis. It's not just Gap. We have Old Navy, Banana Republic. I even throw in a little athletic there every once in a while. But ultimately, brand fan, head to toe all day long. I can't believe how many denim shirts and jeans I have now.

Well, I say it is head to toe on a daily basis. It's not just Gap. We have Old Navy, Banana Republic. I even throw in a little athletic there every once in a while. But ultimately, brand fan, head to toe all day long. I can't believe how many denim shirts and jeans I have now.

I appreciate it, Ryan. Thank you very much.

I appreciate it, Ryan. Thank you very much.

I did, but I never really understood the complexity of how many versions of a denim shirt there really are. And now I really, I can tell you anything you want to know about a denim shirt. Fit, feature, function, philosophy, wash, color. Heavy, light.

I did, but I never really understood the complexity of how many versions of a denim shirt there really are. And now I really, I can tell you anything you want to know about a denim shirt. Fit, feature, function, philosophy, wash, color. Heavy, light.

It wasn't just one challenge the company was facing. I think, first off, it's important to recognize this is a storied legacy portfolio of brands. What I would say from a challenging perspective was recognizing these are legacy brands that ultimately lost their relevance.

It wasn't just one challenge the company was facing. I think, first off, it's important to recognize this is a storied legacy portfolio of brands. What I would say from a challenging perspective was recognizing these are legacy brands that ultimately lost their relevance.

Well, the reason why is a multitude of reasons. But most importantly, what I would say is that the company was always strategically well-intended. It had great new extensions, great endeavors, accelerated growth intent, but flawed execution. And along the way, this was a a portfolio of storytelling brands. I mean, Gap, Banana Republic, Old Navy, Athleta.

Well, the reason why is a multitude of reasons. But most importantly, what I would say is that the company was always strategically well-intended. It had great new extensions, great endeavors, accelerated growth intent, but flawed execution. And along the way, this was a a portfolio of storytelling brands. I mean, Gap, Banana Republic, Old Navy, Athleta.

These are very purpose-driven storytelling brands. And somewhere along the way, we lost the brand narrative and became a retailer that sold stuff. And that was most evident when you went into our stores or online. It was about the product and the price and not really about the narrative behind the brands or what made that merchandising story appealing.

These are very purpose-driven storytelling brands. And somewhere along the way, we lost the brand narrative and became a retailer that sold stuff. And that was most evident when you went into our stores or online. It was about the product and the price and not really about the narrative behind the brands or what made that merchandising story appealing.

And that's really a lot of, I believe, where the company went more wrong than right. That being said, it has always maintained a great deal of volume. But ultimately, the relevance, if you will, to really start to grow the brands into continuous improvement models was lacking.

And that's really a lot of, I believe, where the company went more wrong than right. That being said, it has always maintained a great deal of volume. But ultimately, the relevance, if you will, to really start to grow the brands into continuous improvement models was lacking.

Well, you know, it isn't just one thing, but what I always start with is what made the brand great to begin with? How did it start? What was its breakthrough? How did it scale? What was happening in the world that became so interesting and relevant for the brand to hit those highs? And then where did it go wrong? And so in order to recognize, you know, how to fix

Well, you know, it isn't just one thing, but what I always start with is what made the brand great to begin with? How did it start? What was its breakthrough? How did it scale? What was happening in the world that became so interesting and relevant for the brand to hit those highs? And then where did it go wrong? And so in order to recognize, you know, how to fix

something, you have to acknowledge what's wrong. And to do that, you had to go back to the origin story. And that's what I do as a playbook. You go back and you sort of look at what made you great to begin with. What is the purpose of a brand? What is your reason for bringing? Does anybody need another denim shirt? Does anybody need another white t-shirt?

something, you have to acknowledge what's wrong. And to do that, you had to go back to the origin story. And that's what I do as a playbook. You go back and you sort of look at what made you great to begin with. What is the purpose of a brand? What is your reason for bringing? Does anybody need another denim shirt? Does anybody need another white t-shirt?

What's going to make ours unique and different? And so understanding that, and then can help you guide the context of how to create relevance So the future. And Gap as a brand started in 1969 in a progressive city in San Francisco selling denim records and tapes. It was about denim and music. It was an all-inclusive brand, all sizes, all races, all sexes.

What's going to make ours unique and different? And so understanding that, and then can help you guide the context of how to create relevance So the future. And Gap as a brand started in 1969 in a progressive city in San Francisco selling denim records and tapes. It was about denim and music. It was an all-inclusive brand, all sizes, all races, all sexes.

And in the context of that conversation back then, that was a really innovative brand. approach in the context of retail and consumer. And so recognizing that origin story and figuring out how to make that relevant today is what's inspiring us.

And in the context of that conversation back then, that was a really innovative brand. approach in the context of retail and consumer. And so recognizing that origin story and figuring out how to make that relevant today is what's inspiring us.

I would say that the methodology is virtually the same. Running a disciplined business, financial and operational rigor, and ultimately reinvigorating brands. And Barbie was no exception. I had a great experience with a fantastic team there working on the revitalization of an iconic brand. Similar attributes to Gap. iconic American brand.

I would say that the methodology is virtually the same. Running a disciplined business, financial and operational rigor, and ultimately reinvigorating brands. And Barbie was no exception. I had a great experience with a fantastic team there working on the revitalization of an iconic brand. Similar attributes to Gap. iconic American brand.

Going back to the start of that brand, the founder of Barbie, Ruth Handler, invented Barbie inspired by her daughter playing with paper dolls and imagining a world of possibilities beyond what careers were offered at that particular time to women and girls. And so through that process, Again, peaks and pits.

Going back to the start of that brand, the founder of Barbie, Ruth Handler, invented Barbie inspired by her daughter playing with paper dolls and imagining a world of possibilities beyond what careers were offered at that particular time to women and girls. And so through that process, Again, peaks and pits.

Barbie had transformed into an iconic, inspiring figure for little girls, but somewhere along the line, lost that narrative, lost that relevance. And with a team of people and lots of work, we worked to revitalize that brand, change the narrative, and create a culturally relevant brand.

Barbie had transformed into an iconic, inspiring figure for little girls, but somewhere along the line, lost that narrative, lost that relevance. And with a team of people and lots of work, we worked to revitalize that brand, change the narrative, and create a culturally relevant brand.

storytelling methodology around the same figure that inspires girls limitless potential and that was the original premise of the brand fast forward through different executions that ultimately revitalize that brand so arguably the the capstone to barbie's turnaround was the barbie movie that came out last year which you you were the executive producer on now at gap do we expect to see a gap movie

storytelling methodology around the same figure that inspires girls limitless potential and that was the original premise of the brand fast forward through different executions that ultimately revitalize that brand so arguably the the capstone to barbie's turnaround was the barbie movie that came out last year which you you were the executive producer on now at gap do we expect to see a gap movie

Perhaps. Or who lives in those khakis? How well lived a person's life is if you sort of walk their life through their khakis. It sounds like you've got the script ready to go. Don't quote me on that one. Don't quote me on that one. But that was instinctual. Look, I think a brand like Gap is a pop culture brand. It is a canvas for conversation.

Perhaps. Or who lives in those khakis? How well lived a person's life is if you sort of walk their life through their khakis. It sounds like you've got the script ready to go. Don't quote me on that one. Don't quote me on that one. But that was instinctual. Look, I think a brand like Gap is a pop culture brand. It is a canvas for conversation.

One of the most beautiful things about our story as a Gap brand is we're not defining your style. We provide you the style and the apparel for you to define your own style. This is a brand that's all about originality. It's a brand through its history that was inspired by artists and musicians, inventors.

One of the most beautiful things about our story as a Gap brand is we're not defining your style. We provide you the style and the apparel for you to define your own style. This is a brand that's all about originality. It's a brand through its history that was inspired by artists and musicians, inventors.

If you look back at our history of our ad campaigns, it was always rooted in music and entertainment. We've talked about our methodology, if you will, being fashion-tainment. the combination of fashion and entertainment is where Gap sits.

If you look back at our history of our ad campaigns, it was always rooted in music and entertainment. We've talked about our methodology, if you will, being fashion-tainment. the combination of fashion and entertainment is where Gap sits.

And so you can imagine a lot of interesting ways that Gap as a concept, as a brand, as a platform could express itself in music, in art, in fashion, and in culture. And I would watch the space as we continue to evolve into, you know, again, an iconic American brand that really shapes culture.

And so you can imagine a lot of interesting ways that Gap as a concept, as a brand, as a platform could express itself in music, in art, in fashion, and in culture. And I would watch the space as we continue to evolve into, you know, again, an iconic American brand that really shapes culture.

I think when you look at the roots of the brand and where we've taken the brand over the last couple of years and where the brand has always been, it's been at the epicenter of pop culture. Music dating back to Madonna, Missy Elliott, Lenny Kravitz. Today, we work with great musicians.

I think when you look at the roots of the brand and where we've taken the brand over the last couple of years and where the brand has always been, it's been at the epicenter of pop culture. Music dating back to Madonna, Missy Elliott, Lenny Kravitz. Today, we work with great musicians.

And over the last year and a half, we've experienced, if you will, what we'll call a renaissance, if you will, getting back to some of the things that made Gap great, but interpreting that for today's consumer, today's artists, today's fashions.

And over the last year and a half, we've experienced, if you will, what we'll call a renaissance, if you will, getting back to some of the things that made Gap great, but interpreting that for today's consumer, today's artists, today's fashions.

So Zach is a cultural curator. He was brought in to create, first, the statement that this is an organization that is going to evolve into a design-led, more creatively driven organization. Fashion, pop culture is identified by creating wants, and that is a creative process. It's a business about art and science.

So Zach is a cultural curator. He was brought in to create, first, the statement that this is an organization that is going to evolve into a design-led, more creatively driven organization. Fashion, pop culture is identified by creating wants, and that is a creative process. It's a business about art and science.

And Zach is well known, certainly for his design capabilities, but he's also really familiar in the content space and the entertainment space, of course, Project Runway and various other ways that he's expressed his creativity, leveraging his fashion skillsets.

And Zach is well known, certainly for his design capabilities, but he's also really familiar in the content space and the entertainment space, of course, Project Runway and various other ways that he's expressed his creativity, leveraging his fashion skillsets.

He's brought incredible energy to the portfolio and I believe a great addition as a creative leader in an organization that is going to unlock more and more creativity. He's a magnet for talent, which has been fun bringing in new creative talent into the organization.

He's brought incredible energy to the portfolio and I believe a great addition as a creative leader in an organization that is going to unlock more and more creativity. He's a magnet for talent, which has been fun bringing in new creative talent into the organization.

where he started to have influence, whether it's on Gap with the recent launch of Gap Studio, the PR and the special dresses that we've done on the runway. Old Navy just launched an occasion segment in dresses that's starting to perform really well. Or the technical skill sets that he has on fit across our brands and how important fit is to the consumer proposition.

where he started to have influence, whether it's on Gap with the recent launch of Gap Studio, the PR and the special dresses that we've done on the runway. Old Navy just launched an occasion segment in dresses that's starting to perform really well. Or the technical skill sets that he has on fit across our brands and how important fit is to the consumer proposition.

So all in all, you know, again, I couldn't be more thrilled to have somebody like Zach Posen in the company. And I believe, you know, the creative energy is just starting.

So all in all, you know, again, I couldn't be more thrilled to have somebody like Zach Posen in the company. And I believe, you know, the creative energy is just starting.

Yeah, and Hathaway was also in that mix and there'll be many others. It's an important part of the relevant narrative. It's not necessarily a vital ingredient for the scale of our brand, but it's a really important part of the cultural conversation that our brands can now start to re-engage in.

Yeah, and Hathaway was also in that mix and there'll be many others. It's an important part of the relevant narrative. It's not necessarily a vital ingredient for the scale of our brand, but it's a really important part of the cultural conversation that our brands can now start to re-engage in.

As I mentioned, part of our objective is to create more relevance for the brands that if done well, drive revenue. But I wouldn't say it's the single silver bullet to create relevance.

As I mentioned, part of our objective is to create more relevance for the brands that if done well, drive revenue. But I wouldn't say it's the single silver bullet to create relevance.

Relevance is a complicated marketing conversation that ultimately drives your media mix model that changes very dramatically, your digital dialogue that changes pretty dramatically, the assets and creative that you create. So it's a multifaceted narrative, but certainly one that is topped off, if you will, with celebrity dressing.

Relevance is a complicated marketing conversation that ultimately drives your media mix model that changes very dramatically, your digital dialogue that changes pretty dramatically, the assets and creative that you create. So it's a multifaceted narrative, but certainly one that is topped off, if you will, with celebrity dressing.

Yeah, perhaps. But what I would suggest is that there are a lot of brands from the 90s that are not feeling this nostalgia and they're not enjoying a resurgence. So I think that you've got to be able to recognize consumer trend and how to play into them. And we are doing a good job capturing the interest of nostalgia in a way that connects with this generation. That is the art behind the business.

Yeah, perhaps. But what I would suggest is that there are a lot of brands from the 90s that are not feeling this nostalgia and they're not enjoying a resurgence. So I think that you've got to be able to recognize consumer trend and how to play into them. And we are doing a good job capturing the interest of nostalgia in a way that connects with this generation. That is the art behind the business.

And there are other brands today that are enjoying that with their own version of renewed relevance. But there are plenty of brands in the 90s, by the way, having lived through them, that have not necessarily seen that kind of energy.

And there are other brands today that are enjoying that with their own version of renewed relevance. But there are plenty of brands in the 90s, by the way, having lived through them, that have not necessarily seen that kind of energy.

Well, the metrics that we shared in our last quarterly call were not one and done, if you will. We talked about we exceeded financial expectations. We grew market share. It's the eighth consecutive quarter that we've grown market share. It's a really important metric to understand because the market itself, the apparel industry, has been declining for the past two years.

Well, the metrics that we shared in our last quarterly call were not one and done, if you will. We talked about we exceeded financial expectations. We grew market share. It's the eighth consecutive quarter that we've grown market share. It's a really important metric to understand because the market itself, the apparel industry, has been declining for the past two years.

We don't love that, by the way. We want to be part of a growing industry. But the facts are what they are. The apparel industry has declined over the last two years. We have grown our market share over the last couple of years. That's an indication that we are breaking through. We are resonating with consumers.

We don't love that, by the way. We want to be part of a growing industry. But the facts are what they are. The apparel industry has declined over the last two years. We have grown our market share over the last couple of years. That's an indication that we are breaking through. We are resonating with consumers.

Pricing, promotion, product, value, the orientation of relevance, it's all orchestrated and improving our trajectory going forward. There is no doubt that there'll be headwinds. We're dealing with them now, whether they be tariffs or a consumer sentiment. These, everybody's dealing with, but it's our job to create great product at great prices with great experiences and execute with excellence.

Pricing, promotion, product, value, the orientation of relevance, it's all orchestrated and improving our trajectory going forward. There is no doubt that there'll be headwinds. We're dealing with them now, whether they be tariffs or a consumer sentiment. These, everybody's dealing with, but it's our job to create great product at great prices with great experiences and execute with excellence.

And as long as we stay true to that, there is plenty of market share to go after.

And as long as we stay true to that, there is plenty of market share to go after.

It's all concerning, but I think it's... It's no different than any other year of complexity. We can talk about tariffs being the challenge of this year, but there's been challenges every year that companies go through. And it's how you deal with the challenges at hand. We're working hard, obviously, to mitigate any price increases to consumers.

We want to maintain that integrity of our price value.

We haven't changed our inventory management methodology or our open-to-buy methodology. Currently, as I shared, less than 10% of our product comes from China, which has been obviously one of the countries that has been impacted by tariffs. As Canada and Mexico have been in the limelight in the context of tariffs, less than 1% of our product comes from Canada and Mexico.

By the way, that's combined. Where do your products mostly come from? We have Vietnam, Central America, Bangladesh, other parts of the world that we've been diversifying for the last several years, our manufacturing footprint.

So it doesn't make us immune to the situation, but we do have a bit more resiliency and optionality that is obviously resonating well currently with the dynamic that we're all dealing with.

Well, look, I think that the only place that you could assume to be encouraged with a reduction to do business would be in the U.S. I think if you spend all your time trying to chase, if you will, where the opportunity is to manufacture goods without the burden of tariffs, you're going to waste time.

We do have some manufacturing in the United States. We do t-shirts. We have some denim. We would love to do more in the United States. And there are different teams working on that as a possibility. The size and scale of our business would preclude us from manufacturing everything in the U.S.,

But there are some encouraging incentives to think about as we start to diversify our retail footprint, diversify our manufacturing footprint, and think about ways that we can grow perhaps more manufacturing in the U.S.

Well, we've been growing our business. Again, in the context of a market that's declining, we're breaking through. Our brands are growing. We stabilize them. They're starting to put up scores on the scoreboard in terms of growth. We're growing our market share. We're very conscious of the consumer.

We maintained our position with the value consumer with Old Navy, and we grew the income cohort at the higher level.

not necessarily, there is a flight to value that exists, but the higher end consumer still wants to be associated with brand relevance, higher quality, brand narratives.

And I do believe because we have upped our game, we become more relevant, we become more stylish, we become more effective in that space, that there is a migration of higher end consumers that might not have thought about our brands like Gap and Old Navy and Banana and Athleta and are now starting to be either introduced or reintroduced.

So I actually believe our portfolio creates resilience in the context of where consumers are because we have a broad consumer base.

It's a great question. I'm not sure I loved him sharing that. But what I would say is, at Mattel, Mattel is a toy company. The heart and soul of the company is about fun. It's about surprise. It's about innovation. It's about creativity. And as a leader in that company that led product design and marketing and new brand development and reinvigorating brands,

you had a responsibility to be the inspiration as well as the innovation, if you will, to unlock innovation, to inspire creativity, to bring back that element of surprise and delight. And in my personal history, Willy Wonka was this sort of character that, you know, you just were excited around what was behind the closed door. What was the innovation that you were going to reveal?

And so my role at Mattel was very much leading that creative endeavor. And as I was looking at bringing in creative talent, I referenced Zach as the Willy Wonka of Gaff Hink.

Well, I say it is head to toe on a daily basis. It's not just Gap. We have Old Navy, Banana Republic. I even throw in a little athletic there every once in a while. But ultimately, brand fan, head to toe all day long. I can't believe how many denim shirts and jeans I have now.

I appreciate it, Ryan. Thank you very much.

I did, but I never really understood the complexity of how many versions of a denim shirt there really are. And now I really, I can tell you anything you want to know about a denim shirt. Fit, feature, function, philosophy, wash, color. Heavy, light.

It wasn't just one challenge the company was facing. I think, first off, it's important to recognize this is a storied legacy portfolio of brands. What I would say from a challenging perspective was recognizing these are legacy brands that ultimately lost their relevance.

Well, the reason why is a multitude of reasons. But most importantly, what I would say is that the company was always strategically well-intended. It had great new extensions, great endeavors, accelerated growth intent, but flawed execution. And along the way, this was a a portfolio of storytelling brands. I mean, Gap, Banana Republic, Old Navy, Athleta.

These are very purpose-driven storytelling brands. And somewhere along the way, we lost the brand narrative and became a retailer that sold stuff. And that was most evident when you went into our stores or online. It was about the product and the price and not really about the narrative behind the brands or what made that merchandising story appealing.

And that's really a lot of, I believe, where the company went more wrong than right. That being said, it has always maintained a great deal of volume. But ultimately, the relevance, if you will, to really start to grow the brands into continuous improvement models was lacking.

Well, you know, it isn't just one thing, but what I always start with is what made the brand great to begin with? How did it start? What was its breakthrough? How did it scale? What was happening in the world that became so interesting and relevant for the brand to hit those highs? And then where did it go wrong? And so in order to recognize, you know, how to fix

something, you have to acknowledge what's wrong. And to do that, you had to go back to the origin story. And that's what I do as a playbook. You go back and you sort of look at what made you great to begin with. What is the purpose of a brand? What is your reason for bringing? Does anybody need another denim shirt? Does anybody need another white t-shirt?

What's going to make ours unique and different? And so understanding that, and then can help you guide the context of how to create relevance So the future. And Gap as a brand started in 1969 in a progressive city in San Francisco selling denim records and tapes. It was about denim and music. It was an all-inclusive brand, all sizes, all races, all sexes.

And in the context of that conversation back then, that was a really innovative brand. approach in the context of retail and consumer. And so recognizing that origin story and figuring out how to make that relevant today is what's inspiring us.

I would say that the methodology is virtually the same. Running a disciplined business, financial and operational rigor, and ultimately reinvigorating brands. And Barbie was no exception. I had a great experience with a fantastic team there working on the revitalization of an iconic brand. Similar attributes to Gap. iconic American brand.

Going back to the start of that brand, the founder of Barbie, Ruth Handler, invented Barbie inspired by her daughter playing with paper dolls and imagining a world of possibilities beyond what careers were offered at that particular time to women and girls. And so through that process, Again, peaks and pits.

Barbie had transformed into an iconic, inspiring figure for little girls, but somewhere along the line, lost that narrative, lost that relevance. And with a team of people and lots of work, we worked to revitalize that brand, change the narrative, and create a culturally relevant brand.

storytelling methodology around the same figure that inspires girls limitless potential and that was the original premise of the brand fast forward through different executions that ultimately revitalize that brand so arguably the the capstone to barbie's turnaround was the barbie movie that came out last year which you you were the executive producer on now at gap do we expect to see a gap movie

Perhaps. Or who lives in those khakis? How well lived a person's life is if you sort of walk their life through their khakis. It sounds like you've got the script ready to go. Don't quote me on that one. Don't quote me on that one. But that was instinctual. Look, I think a brand like Gap is a pop culture brand. It is a canvas for conversation.

One of the most beautiful things about our story as a Gap brand is we're not defining your style. We provide you the style and the apparel for you to define your own style. This is a brand that's all about originality. It's a brand through its history that was inspired by artists and musicians, inventors.

If you look back at our history of our ad campaigns, it was always rooted in music and entertainment. We've talked about our methodology, if you will, being fashion-tainment. the combination of fashion and entertainment is where Gap sits.

And so you can imagine a lot of interesting ways that Gap as a concept, as a brand, as a platform could express itself in music, in art, in fashion, and in culture. And I would watch the space as we continue to evolve into, you know, again, an iconic American brand that really shapes culture.

I think when you look at the roots of the brand and where we've taken the brand over the last couple of years and where the brand has always been, it's been at the epicenter of pop culture. Music dating back to Madonna, Missy Elliott, Lenny Kravitz. Today, we work with great musicians.

And over the last year and a half, we've experienced, if you will, what we'll call a renaissance, if you will, getting back to some of the things that made Gap great, but interpreting that for today's consumer, today's artists, today's fashions.

So Zach is a cultural curator. He was brought in to create, first, the statement that this is an organization that is going to evolve into a design-led, more creatively driven organization. Fashion, pop culture is identified by creating wants, and that is a creative process. It's a business about art and science.

And Zach is well known, certainly for his design capabilities, but he's also really familiar in the content space and the entertainment space, of course, Project Runway and various other ways that he's expressed his creativity, leveraging his fashion skillsets.

He's brought incredible energy to the portfolio and I believe a great addition as a creative leader in an organization that is going to unlock more and more creativity. He's a magnet for talent, which has been fun bringing in new creative talent into the organization.

where he started to have influence, whether it's on Gap with the recent launch of Gap Studio, the PR and the special dresses that we've done on the runway. Old Navy just launched an occasion segment in dresses that's starting to perform really well. Or the technical skill sets that he has on fit across our brands and how important fit is to the consumer proposition.

So all in all, you know, again, I couldn't be more thrilled to have somebody like Zach Posen in the company. And I believe, you know, the creative energy is just starting.

Yeah, and Hathaway was also in that mix and there'll be many others. It's an important part of the relevant narrative. It's not necessarily a vital ingredient for the scale of our brand, but it's a really important part of the cultural conversation that our brands can now start to re-engage in.

As I mentioned, part of our objective is to create more relevance for the brands that if done well, drive revenue. But I wouldn't say it's the single silver bullet to create relevance.

Relevance is a complicated marketing conversation that ultimately drives your media mix model that changes very dramatically, your digital dialogue that changes pretty dramatically, the assets and creative that you create. So it's a multifaceted narrative, but certainly one that is topped off, if you will, with celebrity dressing.

Yeah, perhaps. But what I would suggest is that there are a lot of brands from the 90s that are not feeling this nostalgia and they're not enjoying a resurgence. So I think that you've got to be able to recognize consumer trend and how to play into them. And we are doing a good job capturing the interest of nostalgia in a way that connects with this generation. That is the art behind the business.

And there are other brands today that are enjoying that with their own version of renewed relevance. But there are plenty of brands in the 90s, by the way, having lived through them, that have not necessarily seen that kind of energy.

Well, the metrics that we shared in our last quarterly call were not one and done, if you will. We talked about we exceeded financial expectations. We grew market share. It's the eighth consecutive quarter that we've grown market share. It's a really important metric to understand because the market itself, the apparel industry, has been declining for the past two years.

We don't love that, by the way. We want to be part of a growing industry. But the facts are what they are. The apparel industry has declined over the last two years. We have grown our market share over the last couple of years. That's an indication that we are breaking through. We are resonating with consumers.

Pricing, promotion, product, value, the orientation of relevance, it's all orchestrated and improving our trajectory going forward. There is no doubt that there'll be headwinds. We're dealing with them now, whether they be tariffs or a consumer sentiment. These, everybody's dealing with, but it's our job to create great product at great prices with great experiences and execute with excellence.

And as long as we stay true to that, there is plenty of market share to go after.