The Canadian Press - ONLINE EDITION

Gap tops 2Q profit expectations, meets revenue forecasts

  • Print

SAN FRANCISCO - Gap Inc. said its profit rose 10 per cent in the second quarter as the clothing retailer cut expenses and managed to lift sales.

The San Francisco-based company also said it plans to open Gap stores in India next year. The first locations will open in the country's two largest cities, Mumbai and Delhi. Over time, the company expects about 40 franchise-operated locations in India.

For the quarter, Gap said sales at established stores around the world were flat. The performance reflected a 5 per cent decline at Gap, flat sales at Banana Republic, and growth of 4 per cent at Old Navy. That measurement is a key indicator because it strips out the volatility of newly opened and closed locations.

Operating and marketing expenses were lower in the quarter.

The company raised its full year guidance, and now expects to earn $2.95 to $3 per share, reflecting a 5 cents-per-share gain on an asset sale.

For the quarter ended Aug. 2, the company earned $332 million, or 75 cents per share. Not including one-time items, it earned 70 cents per share, or a penny more than Wall Street expected, according to Zacks Investment Research.

A year ago, the company earned $303 million, or 64 cents per share.

Total revenue rose to $3.98 billion, matching analyst forecasts.

Its shares edged up 24 cents to $43.42 in after-hours trading.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Paul Maurice post-game - September 22

View more like this

Photo Store Gallery

  • A squirrel enjoys the morning sunshine next to the duck pond in Assiniboine Park Wednesday– June 27, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Someone or thing is taking advantage of the inactivity at Kapyong Barracks,hundreds of Canada Geese-See Joe Bryksa’s goose a day for 30 days challenge- Day 15- May 22, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think Judy Wasylycia-Leis will greatly benefit from the endorsement by Winnipeg's firefighters?

View Results

View Related Story

Ads by Google