Gap profit falls 14 percent as consumers cut personal budgets
Gap Inc., the apparel company that owns Gap, Old Navy and Banana Republic posted a profit of $215 million, down 14 percent from a year earlier.
The San Francisco based company a year earlier posted a profit $249 million or 34 cents a share. Despite the reduced profit, it still beat analyst predictions of 30 cents a share by earning 31 cents a share.
Earlier this month, Gap reported net sales dropped 7.4% to $3.13 billion, as sales at stores open at least a year fell 8%. Same-store sales were off 13% at Banana Republic, while Gap and Old Navy saw declines of 12% and 3%, respectively. International sales fell 4%.
Glenn Murphy, Gap Inc.’s chairman and chief executive, said in a statement that he was “particularly encouraged” by Old Navy’s performance and that Gap Inc. was focusing regaining market share across all its brands.
© Copyright IBTimes 2024. All rights reserved.