Gap's Second Quarter Earnings Exceeded Analysts' Expectations
April 27, 2011
SAN FRANCISCO -- Gap Inc. said Thursday its earnings more than doubled in the second quarter as sales in all of its clothing lines rose. Net earnings amounted to $65.8 million, or 23 cents per share, for the three months ended April 15, 2011 with $32.4 million, or 11 cents per share, a year ago. Analysts surveyed in advance of the report by Zacks Investment Research had expected on average that earnings would be 19 cents a share. Nonetheless, Gap shares were off 25 cents a share at $34.62 1/2 by midday on the New York Stock Exchange. Revenue rose 29% to $1.12 billion from $869 million a year ago. ``All of our businesses, Gap, GapKids, Banana Republic and Old Navy, contributed to the record sales and earnings,'' said Milton S. Voorhees, Gap's president and chief executive . Sales at stores open at least a year were up 9%. Earnings for the first half of the year were $147.4 million, or 51 cents per share, up 79% from $82.5 million, or 28 cents a share, a year earlier. First-half sales grew 30% to $2.23 billion from $1.72 billion a year ago. Gap operated 1,756 stores at the end of the quarter. That included 920 Gap, 215 Banana Republic, 461 GapKids and 160 Old Navy stores.
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