Gap Inc. reports 40% earnings growth for the quarter

SAN FRANCISCO Gap Inc. reported that for the quarter ended May 3, net earnings for the company increased 40% to $249 million, or 34 cents per share on a diluted basis, compared with $178 million, or 22 cents per share, for the first quarter last year.

Earnings from continuing operations for the first quarter of 2008 were $249 million compared with $205 million last year which represents an increase of 21%.

First quarter net sales were $3.38 billion, compared with $3.55 billion for the first quarter of last year. The company’s first quarter comparable-store sales decreased 11%, compared with a decrease of 4% in the first quarter of the prior year. The company’s online sales for the first quarter increased 21% to $236 million, compared with $195 million for the first quarter of last year.

“We are pleased with our first quarter results, as we delivered solid earnings growth in a difficult environment,” said Glenn Murphy, chairman and cro of Gap Inc. “Looking ahead, we are focused on bringing compelling product and shopping experiences to our customers while managing costs tightly.