Gap Inc. 2Q earnings up 19%

SAN FRANCISCO Gap Inc. Thursday reported that net earnings for the second quarter ended Aug. 4 increased 19% to $152 million, or 19 cents per share on a diluted basis, compared with $128 million, or 15 cents per share on a diluted basis, for the second quarter of last year.

Second quarter net sales were down 1% to $3.69 billion, compared with $3.71 billion for the second quarter of last year. Comparable-store sales decreased 5%, compared with a decrease of 5% as reported for the second quarter of 2006. The company's online sales for the second quarter increased 26% to $172 million, compared with $136 million for the second quarter of last year.

"During the second quarter, we made solid progress stabilizing our business, streamlining our organization and importantly, hiring our new chairman and ceo, Glenn Murphy," said Bob Fisher, a member of Gap Inc.'s board of directors. "I am confident that under Glenn's leadership and the creative direction set by our brand presidents, we will continue to make improvements to the business and deliver improved returns to our shareholders."