Gap 2Q Profit Up 51%

San Francisco Gap Inc. reported a 51% jump in quarterly net income on Thursday, beating Wall Street estimates, as cost-cutting, lower inventories and other moves that boosted profit offset declining sales.

Gap said that profit for the three months ended Aug. 2 rose 51% to $229 million from $152 million a year earlier. Revenue fell 5% to $3.5 billion from $3.69 billion last year, while analysts expected revenue of $3.52 billion.

Same-store sales for the quarter decreased 10%, compared with a decrease of 5% in the second quarter of the prior year.

Glenn Murphy, president and CEO told investors during a conference call late Thursday that the company is working on improving the products it offers and the experience customers have in the stores, as well as shoppers' perception of its brands, to help drive traffic.

The company's online sales for the second quarter increased 11% to $191 million, compared with $172 million for the second quarter of last year.