GPS
#We are still working on it on the inside.
Old Navy has something that they will be testing.
I'm not quite sure of the timing yet, but certainly within the course of this calendar year.
And then I am focused on our international expansion, as well, and in particular for both Old Navy and Gap.
The store size is a big opportunity for us in terms of opening up smaller, more productive real estate spaces where we otherwise wouldn't actually necessarily be able to open a store.
So it is ---+ I'm not ready to make a pronouncement on this one.
But it hasn't lost any of its importance and it certainly is being backed across the Company with a high degree of urgency.
Sure.
So the inventory increase, <UNK>, is really mostly due to the [intransigent] issue related to the port.
We told you guys we wanted to goal ourselves at the beginning of the year, excluding the port, something like slightly down to flattish.
And I would say we are pretty much there excluding this port issue that puts us up four.
And then you see that we try and get back with the guidance in Q2 of getting back to tighter inventories, slightly up.
And the reason we are giving ourselves a little bit of wiggle room is with those late inventories coming in, we don't want to do anything unnatural if goods aren't really liable to just force the sell-through to get to an EOQ.
But it is still fairly tight when you think about it to be slightly up when last year we are lapping only an up two.
So overall, I would say we are comfortable with our inventory levels and will continue to manage them quite tightly.
And your second question was ---+
Oh right.
Yes.
So that opportunity really begins with summer flows because we told you we bought our ---+ when we bought our spring flows, cotton really wasn't down yet.
And so, yes, we hope to capture ---+ and we feel confident that in the second half we should get some tailwind.
The magnitude of that we have also talked about isn't ---+ it's a low single-digit, certainly.
Because the simple math that we try to help you all with to be illustrative is that if cotton prices were down 20% when we placed those orders, broadly you would expect, with nothing else changing, you would expect AUC down about 2%.
But of course there is always some mix and a little bit of reinvestment here and there.
But that is sort of directionally what we are trying to capture in the back half.
Yes.
I mean it's a pretty simple conversation, I would say right now, which is that we are always looking at real estate opportunities, whether it's a store that we should be in, because the center has ---+ is no longer relevant, whether its an opportunity to down size or reposition.
And so that's part of the normal ongoing part of how we (inaudible - background noise).
And that's really the work that the team is doing all the time.
And it's obviously here in North America where we have the most mature business.
But we're obviously doing that all around the world across all of our fleets.
So not really ready to say anything more about it right now in any form other than it is part of how we view running the business in a responsible way.
<UNK>, I don't know if you want to add anything more to that.
That's right.
I mean reviews on the fleet are done on an ongoing basis.
And obviously we look even more deeply when brands are underperforming.
Overall, historically Banana Republic has had very high returns and they have a pretty tight fleet size.
So work underway more to come, I would say.
But yes, it's always on our radar and its an ongoing initiative.
I'd like to thank everyone for joining us on the call today.
As a reminder, the press release, which is available on www.gapinc.com, contains a full recap of our first quarter results as well as the forward-looking guidance included in our prepared remarks.
As always, the Investor Relations team will be available after the call for further questions.
Thank you.
