Gap Inc. sees improved earnings, comps

SAN FRANCISCO Gap Inc. reported that net earnings for the second quarter were $228 million, or 33 cents per share on a diluted basis, compared with $229 million, or 32 cents per share on a diluted basis, for the second quarter last year.

“We’re proud to deliver second quarter earnings per share above last year, especially during a challenging environment,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Building upon two years of work improving our economic model, we’re now putting further emphasis on changing the trajectory of our top line performance. Our focus is to find the right balance between maintaining our cost discipline and making appropriate, targeted investments to gain back market share.”

Second quarter net sales were $3.25 billion, compared with $3.5 billion for the second quarter of last year. The company’s second quarter comparable-store sales decreased 8%, compared with a decrease of 10% for the second quarter of last year. The company’s online sales for the second quarter of 2009, which includes Athleta, increased 17% to $224 million, compared with $191 million for the second quarter of last year.