Turnaround Continues

Gap Inc. (San Francisco) announced that its second-quarter earnings more than tripled and sales jumped 13 percent over last year. The report marks the fourth straight quarter of earnings growth and 10th month of same-store sales growth, following a 29-month slide previously experienced by the clothing retailer.

“We're very pleased with our momentum and the increased customer acceptance of our merchandising and marketing,” says Gap ceo Paul Pressler. “Our strategies are clearly gaining traction.”

For the three months ended August 2, Gap reported that sales rose 13 percent to $3.7 billion, while same-store sales increased 10 percent (compared with last year's decrease of 7 percent).

Gap executives attribute the positive turnaround to summer marketing at its stores, which include Gap, Old Navy and Banana Republic, better product assortments and improved inventory management.