Gap Inc. reports EPS growth

SAN FRANCISCO Gap Inc. reported earnings per share for the second quarter, which ended July 31, increased 9% to 36 cents per share on a diluted basis, compared with 33 cents per share on a diluted basis last year. Net earnings grew 3% to $234 million compared with $228 million for the second quarter last year.

“Our economic model helped us deliver both sales and earnings growth for the second quarter, while we navigated some challenges along the way,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Looking forward, we’re committed to our strategy of growing sales and market share in North America as we also invest in our long-term global and online growth initiatives.”

Second quarter net sales were $3.32 billion compared with $3.25 billion for the second quarter last year. The company’s second-quarter comparable-store sales increased 1% compared with a decrease of 8% for the second quarter last year. The company’s online sales for the second quarter of fiscal year 2010 increased 15% to $258 million compared with $224 million for the second quarter last year.