Wall Street: Gap poised for improvement

New York City A Wall Street analyst said Monday that Gap results are improving and showing stability.

PiperJaffray analyst Jeffrey P. Klinefelter said Gap is poised to benefit as the clothing category recovers from the recession.

"After three years of apparel industry declines, our research points to a low single-digit gain during 2010 and for large-scale retailers like Gap to benefit at least at average rates," he wrote.

The Gap has worked on cutting costs and improving its merchandise selection at its namesake, Old Navy and Banana Republic stores. The company reported March same-store sales rose 11%, on strong results across all of its brands.