Headlines

Gap Profits Soar in 2Q

Cost-cutting trumps falling sales for struggling specialty apparel retailer; Wyatt named Old Navy president

Published

16 years ago

August 22, 2008

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Gap Inc. (San Francisco) reported a 51 percent increase in profits for its second quarter ended Aug. 22, 2008.

Even though revenues fell 5 percent in the quarter and same-store sales dropped 10 percent, the specialty apparel retailer gained on cost-cutting and the tight control over inventory it has been implementing under new ceo Glenn Murphy.

In North America, same-store sales fell 6 percent at both the Gap and Banana Republic divisions and fell 16 percent at Old Navy. International same-store sales also fell 6 percent.

The company said it would open 15 fewer stores, mainly Banana Republic, than previously expected during the year. It said it now expects to open 100 stores.

The company also named John Wyatt president of its Old Navy chain. Wyatt had been serving as acting president since February, when Dawn Robertson left the struggling operation after only 16 months.

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