Gap sees second quarter profit plummet on higher costs
22 August 2011 12:01
Gap Inc has reported a 19% decline in second quarter profit as price hikes failed to offset increasing costs.
Net income came in at $189 million, down from $234 million a year ago but still above analysts' forecasts.
"Despite a difficult quarter, we still delivered a net sales improvement and I continue to believe we have far greater opportunities than challenges ahead of us," said Glenn Murphy, chairman and chief executive officer of Gap Inc. "Every brand, division, and geography is focused on what matters most – delivering consistent, great product and more effective marketing in order to drive higher levels of performance."
Same store sales fell by 2% compared with an increase of 1% last year while total sales rose 2.1% to $3.39 billion.
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