Gap Inc. reports 2Q earnings growth

SAN FRANCISCO Gap Inc. reported that second quarter net earnings increased 51% through the combination of driving healthy margins and effectively managing costs.

For the quarter ended Aug. 2, net earnings were $229 million, or 32 cents per share on a diluted basis, compared with $152 million, or 19 cents per share, for the second quarter last year.

“External conditions aside, we continue to deliver improved earnings with healthy margins and I am pleased with our second quarter results,” said Glenn Murphy, chairman and ceo of Gap Inc. “While we continue to pursue our 2008 financial strategy, we are very focused on bringing more customers into our stores.”

Second quarter net sales were $3.5 billion, compared with $3.69 billion for the second quarter of last year. The company’s second quarter comparable-store sales decreased 10%, compared with a decrease of 5% in the second quarter of the prior year.

The company reaffirmed that it expects fiscal year diluted earnings per share on a GAAP basis to be $1.30 to $1.35.