Gap 3Q Profit Up

San Francisco Gap Inc. posted higher quarterly net profit on Thursday, topping Wall Street expectations, helped by lower inventory and cost cutting that boosted margins and offset a decline in sales.

Net income in its third quarter ended Nov. 1 rose to $246 million from $238 million, or 30? per share, a year earlier.

Sales fell nearly 8% to $3.56 billion from $3.85 billion.

"As sales fall we make an effort to ensure that store-related expenses ... stay in line as a percent of sales," said CFO Sabrina Simmons.