Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Gap tops 2Q profit expectations, meets revenue forecasts

This May 14, 2014 photo shows the sign on a GAP store in the Shadyside section of Pittsburgh. On Thursday, Aug. 21, 2014, Gap Inc. is scheduled to report quarterly financial results after the market closes. (AP Photo/Gene J. Puskar)

Enlarge Image

This May 14, 2014 photo shows the sign on a GAP store in the Shadyside section of Pittsburgh. On Thursday, Aug. 21, 2014, Gap Inc. is scheduled to report quarterly financial results after the market closes. (AP Photo/Gene J. Puskar)

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.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates