Gap Slump Continues

  • May 21, 2009
Gap Inc. says its first-quarter profits fell to $215 million, from $249 million a year ago, while sales slipped to $3.13 billion from $3.38 billion last year.

On a same-store basis, the San Francisco-based company's same-store results dropped 8% for the quarter -- an improvement from the first quarter last year, when sales decreased 11%. At its Gap North America division, same-store sales fell 12% for the quarter, at Banana Republic 13%, at Gap International, 4%, and at Old Navy -- the division that has been one of the worst performers of late -- the decline was just 3%. (In the same period a year ago, Old Navy's sales sank a steep 18%.)

"We're pleased with the way we navigated the challenging economic environment, and are particularly encouraged by Old Navy's recent performance," says Glenn Murphy, chairman and CEO, in a release. "We remain focused on increasing traffic and gaining back market share."--Sarah Mahoney



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