Gap Q2 Profit Declines, Yet Tops Street View - Update
8/20/2009 5:57 PM ET
(RTTNews) - Specialty retailer Gap Inc. (GPS: News ), Thursday reported a slight decline in second-quarter profit as lower operating expenses almost offset the effect of the decline in sales. Sales for the quarter declined by about $250 million from a year ago, however, came in ahead of Street consensus.
The San Francisco, California-based company posted second quarter net income of $228 million or $0.33 per share, compared to $229 million or $0.32 per share in the year-ago quarter. On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.32 per share for the quarter. Analysts' estimates typically exclude special items.
Earnings, on a per share basis, increased from last year helped by lower share count as a result of share repurchases.
In the preceding first quarter, Gap posted net income of $215 million or $0.31 per share, down from $249 million or $0.34 per share in the prior year.
Net sales for the quarter decreased to $3.25 billion from $3.50 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $3.23 billion for the quarter.
Comparable store sales for the quarter decreased 8%, compared to a decrease of 10% for the same quarter last year.
Segment-wise, sales of Gap North America decreased to $878 million from $999 million last year. Comparable store sales declined 10%, compared to a decrease of 6% in the previous year.
Banana Republic North America sales declined to $516 million from $599 million with a comparable store sales decrease of 15% compared to a decrease of 6% from the earlier year.
